NEW YORK (AP) — Shares of Harvest Natural Resources jumped in Wednesday premarket trading as the energy company reached a deal to sell its stake in Venezuelan assets to Pluspetrol Venezuela SA for more than initially expected.
Harvest Natural Resources Inc. said Tuesday that Pluspetrol will buy its 32 percent stake in Petrodelta SA by purchasing HNR Energia BV's 80 percent interest in Harvest-Vinccler Dutch Holding BV in two separate and independent transactions. The total value of the proposed transactions is $400 million.
In September Harvest Natural announced that it was in exclusive talks to sell Petrodelta to Pluspetrol for approximately $373 million.
Houston-based Harvest Natural Resources said Wednesday that it would sell 29 percent of Harvest-Vinccler in the first proposed transaction for $125 million. That deal is targeted to close next month. Net proceeds are anticipated at about $120 million, after removing deductions tied to transaction expenses and taxes. Harvest Natural plans to use the proceeds to pay its long-term debt. Remaining funds would be used for working capital.
In the second proposed transaction, Harvest Natural would sell its remaining stake in Harvest-Vinccler for $275 million. Net proceeds are expected at about $200 million once removing deductions for taxes and transaction expenses. The deal is expected to close in 2014's first half. It needs approvals from Harvest stockholders and the Venezuelan government.
Harvest Natural Resources' stock climbed 62 cents, or 19.5 percent, to $3.80 in premarket trading about 30 minutes before the opening bell.